Barcoo Pty Ltd employs five (5) employees in its factory. GALLAGHER spends half his time delivering finished goods for the sales department. Half of the wages are paid by the sales department. All accounts are in a single ledger. The following pay information relates to the week ended 11 June 2010. Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime (at 1½ times the normal hourly rate). The supervisor is paid $20 per hour, and the remaining four employees $16 per hour. The time sheet summary for the week to 8 June 2007 shows: Employee Hours Total Chong Supervision 40 Dashwood Job 01 36 Cleaning 6 42 Edwards Job 01 22 Job 02 20 42 Ftelianos Job 02 28 Sick leave 4 Maintenance 8 40 Gallagher Materials store 40 204 The company reduces the appropriate accrual/provision for any leave paid. Payment of sick leave was approved for Ftelianos PAYG tax withheld from all pays for the week totalled $1,036. There were no other payroll deductions. The company accrues superannuation guarantee contributions at 9% of gross ordinary wages. ( calculate to the nearest whole dollar ) Overtime premium is charged to factory overhead, except for job 02 that is a rush order. REQUIRED: (a) Calculate the total gross payroll for the week ended 11 June 2010. (b) Prepare general journal entries to record: The allocation of the labour cost as direct and/or indirect. The gross factory payroll for the week and the payment of net pays. The accrual of the company's superannuation guarantee debt (rounded to nearest dollar).
Barcoo Pty Ltd employs five (5) employees in its factory. GALLAGHER spends half his time delivering finished goods for the sales department. Half of the wages are paid by the sales department. All accounts are in a single ledger. The following pay information relates to the week ended 11 June 2010. Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime (at 1½ times the normal hourly rate). The supervisor is paid $20 per hour, and the remaining four employees $16 per hour. The time sheet summary for the week to 8 June 2007 shows: Employee Hours Total Chong Supervision 40 Dashwood Job 01 36 Cleaning 6 42 Edwards Job 01 22 Job 02 20 42 Ftelianos Job 02 28 Sick leave 4 Maintenance 8 40 Gallagher Materials store 40 204 The company reduces the appropriate accrual/provision for any leave paid. Payment of sick leave was approved for Ftelianos PAYG tax withheld from all pays for the week totalled $1,036. There were no other payroll deductions. The company accrues superannuation guarantee contributions at 9% of gross ordinary wages. ( calculate to the nearest whole dollar ) Overtime premium is charged to factory overhead, except for job 02 that is a rush order. REQUIRED: (a) Calculate the total gross payroll for the week ended 11 June 2010. (b) Prepare general journal entries to record: The allocation of the labour cost as direct and/or indirect. The gross factory payroll for the week and the payment of net pays. The accrual of the company's superannuation guarantee debt (rounded to nearest dollar).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Barcoo Pty Ltd employs five (5) employees in its factory. GALLAGHER spends half his time delivering finished goods for the sales department. Half of the wages are paid by the sales department. All accounts are in a single ledger.
The following pay information relates to the week ended 11 June 2010.
- Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime (at 1½ times the normal hourly rate). The supervisor is paid $20 per hour, and the remaining four employees $16 per hour.
- The time sheet summary for the week to 8 June 2007 shows:
Employee |
|
Hours |
Total |
|
Chong |
Supervision |
|
40 |
|
|
|
|
|
|
Dashwood |
Job 01 |
36 |
|
|
|
Cleaning |
6 |
42 |
|
|
|
|
|
|
Edwards |
Job 01 |
22 |
|
|
|
Job 02 |
20 |
42 |
|
|
|
|
|
|
Ftelianos |
Job 02 |
28 |
|
|
|
Sick leave |
4 |
|
|
|
Maintenance |
8 |
40 |
|
Gallagher |
Materials store |
|
40 |
204 |
|
|
|
|
|
- The company reduces the appropriate accrual/provision for any leave paid. Payment of sick leave was approved for Ftelianos
- PAYG tax withheld from all pays for the week totalled $1,036. There were no other payroll deductions.
- The company accrues superannuation guarantee contributions at 9% of gross ordinary wages. ( calculate to the nearest whole dollar )
- Overtime premium is charged to factory
overhead , except for job 02 that is a rush order.
REQUIRED:
(a) Calculate the total gross payroll for the week ended 11 June 2010.
(b) Prepare general
- The allocation of the labour cost as direct and/or indirect.
- The gross factory payroll for the week and the payment of net pays.
- The accrual of the company's superannuation guarantee debt (rounded to nearest dollar).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education